Bankruptcy INK

Anyone who has been reading Bankruptcy INK or is following the news, understands that times are tough for homeowners in southeastern Michigan and beyond as the economy has dried up and record number of home foreclosures are being recorded.

If you are one of the people who signed up for adjustable home mortgage rates that you can no longer afford, it may seem like desperate times where there are not many options left. It may be possible for you to refinance your home again, but beware that some of those lenders do not have your best interests in option and our probably eyeing your home.

In an ABCnews.com recently published article, they reported: “Predatory lending typically occurs in refinancing deals. Unscrupulous lenders cause people to lose their homes and neighborhoods to lose their luster. Aggressive mortgage brokers target the poor, the elderly, minorities and women, but it can happen to anyone.”

According to ABCnews.com, there are signs that serve as red flags you should investigate when your new loan is not as it appears:

• “Predatory lenders often promise one set of terms when they talk to you, then jack up the price at closing.”

• “If a mortgage broker asks you to sign a blank application form.”

• “Adding co-signers is another ploy.”

• “If a lender refuses to give you a copy of the good-faith estimate, that's a signal that the estimate will change.”

• “Predatory lenders often structure loans with balloon payments at the end.”

• “If you see " credit life insurance" as a line item in your loan, beware! This kind of insurance is supposed to pay off your loans if you die. It's a rip-off.”

• “Same goes for homeowner's insurance.”

• “Some predatory lenders continue to abuse you after you've gotten your loan by tacking on expenses to your monthly payments.”

On Thursday we will look at ways you can prevent turning your loan into a shady business deal.